If you’ve got the option to max out your IRA every year, youre in good shape.
Because of this benefit, the IRS has strict rules for how much you’re able to contribute.
Be careful not to exceed their limit, because youll be penalized.
Exceed this amount, and youll be hit with a 6% penalty.
It accrues every year until you withdraw the excess contribution, Forbes explains.
According to the IRS, the penaltyonly amounts to an average of $131 per taxpayer.
It might not seem like much, but Forbes points out its a problem that repeats itself each year.
People commonly overcontribute when rolling over an IRA from one firm to another once theyve reached the distribution age.
Read Forbes full post for more detail.
The Danger of Overstuffing Your IRA| Forbes
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